Friday, January 14, 2011 2:31 PM

Junk Bonds and Leveraged Buyouts: Here We Go Again, with "Disturbingly High" Debt Issuance

In the mad dash for yield it's a case of "here we go again". No one cares about risk, or valuation. It is doubtful anyone cares about relative values. In fact, it appears as if there is no care at all.

This is part of the reckless "success" Bernanke initiated with Quantitative Easing Part II that he is now bragging about.

Please consider Junk Borrowers Turn Tables With Looser Terms. http://noir.bloomberg.com/apps/news?pid ... uaFtfPvuaM

MGM Resorts International and CommScope Inc. are leading junk-rated companies selling debt with less protection for investors as high-yield bond offerings soar to more than double last year’s weekly pace.

MGM’s CityCenter Holdings LLC joint venture issued $600 million of notes that can pay interest in cash or additional debt, the largest such offering in more than a year, according to data compiled by Bloomberg. CommScope sold $1.5 billion of bonds with covenants that permit a “disturbingly highâ€